German defense contracting giant Rheinmetall has officially inaugurated a new factory in Szeged, Hungary, marking a significant expansion in the company’s capacity for both military and commercial operations. This facility represents Rheinmetall’s first major hybrid site outside of Germany, emphasizing its commitment to growth in international markets.
The factory will operate under the company’s Power Systems segment, which is dedicated to creating mobility solutions, control systems, and various digital products primarily aimed at the automotive and energy sectors. In addition, the Electronic Solutions division will utilize the facility to enhance its focus on military digitization capabilities powered by artificial intelligence.
Constructed with an investment of 63 million euros (approximately $74 million), the plant occupies a sizable area of 84,000 square meters (904,168 square feet). Having begun construction in 2024, the center is now fully operational, with the initial assembly lines dedicated to producing components for electromobility.
Rheinmetall has ambitious plans for the facility, which aims to expand its production areas and increase its workforce to over 300 employees by 2030. Currently, around 60 specialists are employed at the site, which boasts 15,000 square meters (161,458 square feet) of assembly floor space, alongside an additional 3,850 square meters (41,441 square feet) allocated for logistics, capable of accommodating 3,500 pallets.
Christoph Müller, CEO of Rheinmetall Power Systems, emphasized the strong partnership and mutual trust between Rheinmetall and Hungary. He articulated that Hungary serves not merely as a localization hub for the company but as a vital home market. Müller highlighted the facility as a high-tech site where sophisticated civil and military technologies are integrated under one roof, aiming to foster further collaboration and innovation in both sectors.
